Marco Enterprises manufactures one of the components used to assemble its main company product. Specialty Products, Inc., has offered to make the component at a cost of $12.40 per unit. Marco Enterprises' current cost is $17.00 per unit of the component, based on the 85,000 components that Marco Enterprises currently produces. Read the requirements Incremental Analysis Outsourcing Decision Requirement 1. If Marco Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how parentheses in the Difference column when the cost to make exceeds the cost to buy) Variable costs Plus: Fixed costs Total cost of 85,000 components Less: Profit from another product Net cost Make Component Outsource Component This current cost per un (Click the icon to vie Difference None of Marco Enterpris outsourced. However, th would be expected to ge

Marco Enterprises manufactures one of the components used to assembie its main company product Specialty Products, Inc, has offered to make the component at a cost of $12.40 per unit Marco Enterprises' current cost is $17.00 per unit of the component, based on the 85,000 components that Marco Enterprises currently produces Read the requirements This current cost per un (Click the icon to vie None of Marco Enterpris outsourced However, th would be expected to ge Requirement 1. If Marco Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how parentheses in the Difference column when the cost to make exceeds the cost to buy) This current cost per unit is based on the following calculations (Click the icon to view the information.) None of Marco Enterprises' fixed costs will be eliminated if the component is outsourced However, the freed capacity could be used to build a new product. This new product would be expected to generate $29,000 of contribution margin per year. 9 income increase or decrease? By how much? (Enter a "0" for any zero balances Use a minus sign or Requirements 1. If Marco Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit Marco Enterprises would be willing to pay If it outsources the component? Data table